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| Perfect Pedigree |
Pedigree Also Pays in Financing
Michael Verdon
02/02/2004
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Verbit says that the loan for a foreign project would have to exceed $7 million for her bank to potentially become a partner, largely because of the inherent risks. "We’re particular about which yards we build with," she says. "We don’t want an unhappy client and a half-completed yacht halfway around the world."
But once again, the idea of pedigree pays. Verbit says she has put together multiple loans for clients in pedigree yards in Europe and Australia, once they clear due-
diligence hurdles. She expects to continue working with better-known foreign yards.
While Verbit has seen a growing interest in building overseas, she has also witnessed an explosion in the dollar amount for loans. "In 1989, a million-dollar yacht loan would’ve been large," she says. "That’s still a nice-sized loan, but the average is closer to $4 million. That number continues to rise each year as the yachts get larger and more complicated." Which is why, she notes, it is better to invest in a pedigree yacht with a healthy resale value. Back to main article: Perfect Pedigree
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